Advanced Micro Devices (NASDAQ:AMD) Rating Increased to Strong-Buy at Zacks Research

Key Points

• Zacks Research upgraded Advanced Micro Devices (NASDAQ:AMD) from "hold" to "strong‑buy" and multiple firms boosted ratings and price targets, leaving a consensus "Moderate Buy" with an average target of $385.86.
• AMD beat Q1 expectations — EPS $1.37 vs. $1.29 est. and revenue $10.25B vs. $9.90B — driven by accelerating data‑center/AI demand, helping the stock surge roughly 18.4% toward a 52‑week high.
• Near‑term risks include insider selling and stretched valuation/technicals: insiders sold ~304,672 shares (~$70M) in the last 90 days and the company trades at a high PE (~138), which could invite short‑term volatility or profit‑taking.

Advanced Micro Devices (NASDAQ:AMD - Get Free Report) was upgraded by investment analysts at Zacks Research from a "hold" rating to a "strong-buy" rating in a research note issued on Tuesday,Zacks.com reports.

Several other research firms also recently commented on AMD. Wells Fargo & Company increased their price objective on shares of Advanced Micro Devices from $345.00 to $505.00 and gave the company an "overweight" rating in a report on Wednesday. Oppenheimer downgraded shares of Advanced Micro Devices from a "market perform" rating to a "market perform" rating in a report on Wednesday. Northland Securities reissued a "market perform" rating and set a $260.00 price objective on shares of Advanced Micro Devices in a report on Monday, April 27th. Benchmark increased their price objective on shares of Advanced Micro Devices from $325.00 to $485.00 and gave the company a "buy" rating in a report on Wednesday. Finally, Seaport Research Partners raised shares of Advanced Micro Devices from a "neutral" rating to a "buy" rating and set a $430.00 price objective for the company in a report on Wednesday. Two research analysts have rated the stock with a Strong Buy rating, thirty have given a Buy rating and twelve have assigned a Hold rating to the company. According to data from MarketBeat.com, Advanced Micro Devices has an average rating of "Moderate Buy" and a consensus price target of $385.86.

Advanced Micro Devices Stock Up 18.4%

AMD opened at $420.56 on Tuesday. The firm has a 50-day simple moving average of $240.09 and a two-hundred day simple moving average of $230.52. Advanced Micro Devices has a 52 week low of $96.88 and a 52 week high of $430.60. The company has a market capitalization of $685.66 billion, a PE ratio of 137.89, a price-to-earnings-growth ratio of 1.26 and a beta of 2.40. The company has a quick ratio of 2.01, a current ratio of 2.85 and a debt-to-equity ratio of 0.04.

Advanced Micro Devices (NASDAQ:AMD - Get Free Report) last released its quarterly earnings data on Tuesday, May 5th. The semiconductor manufacturer reported $1.37 EPS for the quarter, beating the consensus estimate of $1.29 by $0.08. Advanced Micro Devices had a net margin of 13.37% and a return on equity of 9.68%. The business had revenue of $10.25 billion during the quarter, compared to the consensus estimate of $9.90 billion. During the same quarter in the prior year, the firm earned $0.96 EPS. The business's revenue was up 37.8% on a year-over-year basis. Analysts forecast that Advanced Micro Devices will post 5.91 earnings per share for the current fiscal year.

Insider Buying and Selling at Advanced Micro Devices

In related news, EVP Mark D. Papermaster sold 31,320 shares of the stock in a transaction dated Friday, April 24th. The shares were sold at an average price of $350.00, for a total value of $10,962,000.00. Following the completion of the transaction, the executive vice president owned 1,236,037 shares of the company's stock, valued at approximately $432,612,950. This trade represents a 2.47% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Lisa T. Su sold 125,000 shares of the stock in a transaction dated Wednesday, February 11th. The shares were sold at an average price of $214.36, for a total transaction of $26,795,000.00. Following the completion of the transaction, the chief executive officer directly owned 3,152,476 shares of the company's stock, valued at approximately $675,764,755.36. The trade was a 3.81% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 304,672 shares of company stock worth $70,135,070 in the last 90 days. 0.50% of the stock is currently owned by insiders.

Institutional Trading of Advanced Micro Devices

Several institutional investors have recently added to or reduced their stakes in AMD. Impax Asset Management Group plc boosted its stake in Advanced Micro Devices by 326.5% in the third quarter. Impax Asset Management Group plc now owns 52,068 shares of the semiconductor manufacturer's stock valued at $8,424,000 after acquiring an additional 39,861 shares in the last quarter. Zweig DiMenna Associates LLC boosted its stake in Advanced Micro Devices by 127.6% in the third quarter. Zweig DiMenna Associates LLC now owns 72,602 shares of the semiconductor manufacturer's stock valued at $11,746,000 after acquiring an additional 40,708 shares in the last quarter. Wedbush Securities Inc. boosted its stake in Advanced Micro Devices by 7.8% in the third quarter. Wedbush Securities Inc. now owns 84,256 shares of the semiconductor manufacturer's stock valued at $13,632,000 after acquiring an additional 6,095 shares in the last quarter. Highline Wealth Partners LLC boosted its stake in Advanced Micro Devices by 4,891.6% in the fourth quarter. Highline Wealth Partners LLC now owns 8,286 shares of the semiconductor manufacturer's stock valued at $1,775,000 after acquiring an additional 8,120 shares in the last quarter. Finally, William Blair Investment Management LLC boosted its stake in Advanced Micro Devices by 72.5% in the third quarter. William Blair Investment Management LLC now owns 1,047,200 shares of the semiconductor manufacturer's stock valued at $169,426,000 after acquiring an additional 440,296 shares in the last quarter. Institutional investors own 71.34% of the company's stock.

Key Advanced Micro Devices News

Here are the key news stories impacting Advanced Micro Devices this week:

• Positive Sentiment: Q1 beat + bullish guidance: AMD reported stronger-than-expected Q1 results (EPS and revenue beat) and guided Q2 revenue above Street expectations, driven by an accelerating data‑center/AI demand cycle. AMD forecasts quarterly revenue above expectations — Reuters
• Positive Sentiment: Strong data‑center momentum and management commentary: Data‑center revenue jumped materially year‑over‑year and CEO Lisa Su highlighted accelerating AI/agent adoption as a driver of sustained CPU and GPU demand. AMD's Su explains what's behind massive forecast change — CNBC
• Positive Sentiment: Broad analyst upgrades and sharply higher price targets: Multiple firms raised ratings and targets after the quarter (Goldman, TD Cowen, Wells Fargo, Rosenblatt, etc.), which amplified buy-side momentum and reinforced upside expectations. Wall Street just piled into AMD: eight firms hike price targets — 247WallSt
• Positive Sentiment: Supply/partner wins (TSMC memory capacity): Reports of critical capacity/support from suppliers helped validate AMD’s ability to scale AI chip production, easing a key execution risk for hyperscaler orders. AMD surges on TSMC capacity win and strong earnings — Blockonomi
• Neutral Sentiment: Morgan Stanley raised its price target to $410 but kept an equal‑weight view — a vote of confidence on fundamentals but a cautious stance on valuation at current levels. Price Target Raised to $410 at Morgan Stanley — American Banking News
• Neutral Sentiment: JPMorgan raised its target (to $385) but maintained a neutral rating — some banks are tempering enthusiasm with valuation/near‑term positioning caveats. JPMorgan price target change — TickerReport
• Negative Sentiment: Profit‑taking by large active managers: ARK (Cathie Wood) trimmed AMD exposure, selling roughly $8M of shares — signals some funds are locking gains amid the recent rally. Cathie Wood sells AMD — Benzinga
• Negative Sentiment: Insider sales and technical/valuation cautions: Public filings show sizable insider/management sell activity and some analysts/market monitors flag stretched technicals (RSI) and elevated multiples — risks for short‑term pullbacks or volatility. Insider trading data — QuiverQuant RSI/technical caution — TipRanks

Advanced Micro Devices Company Profile

Advanced Micro Devices, Inc NASDAQ: AMD is a global semiconductor company that designs and sells microprocessors, graphics processors, chipsets and adaptive computing solutions for a broad set of markets. The company's product portfolio includes consumer and commercial CPUs under the Ryzen and Threadripper brands, data center processors under the EPYC brand, and Radeon graphics processing units for gaming and professional visualization. AMD also offers semi-custom system-on-chip (SoC) products for gaming consoles and other specialized applications, and provides supporting software and platform technologies for OEMs, cloud service providers and end users.

Founded in 1969, AMD has evolved from a supplier of logic chips into a diversified, fabless semiconductor designer.

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